HomeMy WebLinkAboutRS05-Redevelopment Agency
. RE~VELOPMENT AGENCV.~UEST FOR ~MMISSION/COUNCIL AcflON
~.!l'm: Glenda Saul, Executive Director
Subject:
a) ORDINANCE ESTABLISHING A HOME
MORTGAGE FINANCE PROGRAM FOR THE
CITY OF SAN BERNARDINO.
b) APPROVE THE STRUCTURE OF THE
1985 BOND ISSUE
'Dept: Redevelopment Agency
Date: November 4, 1985
Synopsis of Previous Commission/Council action:
12/17/84 Resolution 84-552 authorized submission of an application to the Mortgage
Bond Allocation Committee for Single Fsmily Bonds 1985
Sept. 1985 Notified by the State that San Bernardino has been allocated $36,000,000
for the issuance of Single Family Bonds of 1985
Recommended motion:
(MAYOR AND COMMON COUNCIL)
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a.
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
ESTABLISHING A HOME MORTGAGE FINANCE PROGRAM FOR LOW-AND MODERATE-INCOME
FAMILIES PpaSUANT TO PART 5 OF DIVISION 31 OF THE CALIFORNIA HEALTH AND
SAFETY COrlE 'AND AUTHORIZING CITY OFFICERS TO IMPLEMENT THE PROGRAM.
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b.
APPROVE THE CURRENT STRUCTURE OF THE 1985 SINGLE FAMILY MORTGAGE REVENUE
BOND CITY OF SAN BERNARDINO ISSUE, AS PROPOSED BY STAFF.
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Signature
Contact person:
.GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
Ward: N/A
Project: N/A
Date: November 4, 1985
YES
Supporting data attached:
No adverse Impact on City:
f"'-" lcil Notes:
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Agenda Item No.
1<5..5
. CI'Cr OF SAN BERNARDC() - REQULlr FOR COUNCIL AC....JoN
STAFF REPORT
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The City of San Bernardino has received a $36,000,000 allocation from the state to
issue a Single Family Mortgage Revenue Bond in 1985.
In order for the city to issue the bond, the Ordinance establishing a Home Mortgage
Finance Program must be adopted. The Mayor and Council adopted a similar Ordinance
last year as a Joint Powers Authority with the City of Indio. However, that Ordinance
would not be applicable to this years issue since the City is planning to issue its
own bond.
The Ordinance stresses the need and importance of affordable housing in California.
San Bernardino is in an enviable position in the state. Most cities use Single Family
Bonds to create low- and moderate-income housing for their communities. Because the
cost of housing is less in San Bernardino, the City may use this enhancing financing
tool to develop up-scale housing projects and also to upgrade current housing stock.
Following is a summary of developer commitments for our 1985 Single Family Mortgage
Revenue Bond which must close by December 31, 1985.
The allocation from the state is $36,000,000. In addition to the $19,360,000 for new
construction, the Agency proposes buying $2,000,000 for Infill housing to be targeted
in the Enterprise Zone plus an additional $2,000,000 for rehab remodeling to be used
on a city-wide basis.
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Staff will be meeting over the next week with up-scale housing developers to interest
them in our program - hopefully to achieve a $36,000,000 issue.
Twenty percent of the issue must be reserved for drawdown in the first year for these
targeted areas. Target areas are defined as areas within the city where 70% or more
of the families received 80% or less than statewide median family incomes.
First Interstate Bank of Colorado wishes to purchase $8,000,000 for existing homes.
These homes would be throughout the city.
Inclusive of the above amounts, the total bond issue will equal $31,260,000.
004lG/EB
11-04-85
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75-0264
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following is a recap of the proposed issue:
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1. Willow Woods
2. Shadow Meadows
3. NuTech
4. Security Pad fi c
5. Southpointe
BI!A
In-Fill
Rehab-Remodeling
First Interstate
of Colorado
SINGLE FAMILY 1985
~ # of Unii5 Location Pric@ Ran9@
$ 5.000.000 86 Pepper & Randa 11 $73.990-$93,990
Rialto
SOO,OOO 137 condo units SW corner of Olive & $81.900-$93.900
Irvington. S.B.
8,400.000 16 town homes 9th & Del Rosa $S5.S00-$64,500
S6 single San Bernardino $81.900-$95.900
360.DOO 7 W. Loyola & Windsor $7S.000
San Bernardi no
S,OOO 000 Barton & Waterman $89,900-$108.900
$19.260.000
2.000,000
2.000.DOO
$23,260.00D
Enterprise Zone
City Wi de
8.000 000
$31.260.000
Exi sti n9
The buyer must be a first time home buyer except for target area homes and except for ten percent
of the aggregate amount of mortgage loans. Eligible incomes may range from $27,000 to $49,000 for
buyers.
Attached for your review ;s a map showing the City's target area.
Staff presented the proposed issue to the Redevelopment Committee on October 22. 1985. where it
was approved.
Staff is currently working with other high quality single family developers. seeking their
participation in the issue so that the issue equals the $36,000,000 allocation by the State.
Staff hopes to have other developers included in the issue by the next time the item comes before
the Mayor and Council.
D721K/EB
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CITY
OF SAN BERNARDINO
Census Tracts
1980
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''TA"r.ETED A...,EAS.. are those areas
where 70% or 1I!Ore of f."..1lies
have ineornes eO% or Ie.. than
atatew1de median !amil:v ineome.
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Cirel~ area. are ''Target'' :rraets.
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2,232-2/1113S/jm
10/30/85
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ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO ESTABLISHING A HOME
MORTGAGE FINANCE PROGRAM FOR LOW- AND
MODERATE-INCOME FAMILIES PURSUANT TO PART 5 OF
DIVISION 31 OF THE CALIFORNIA HEALTH AND SAFETY
CODE AND AUTHORIZING CITY OFFICERS TO IMPLEMENT
THE PROGRAM
WHEREAS, there is a shortage in the City of San Bernardino,
California (the "City"), of housing which is affordable by persons
on the. lower end of the purchasing spectrum, and there exists a
consequent need to encourage the construction of homes affordable by
such persons and otherwise to increase the housing supply in the
City for such persons; and
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WHEREAS, the Mayor and Common Council oE' the Cfty (the
"Council") intends to issue bonds, pursuant to Part 5 of Division 31
of the Health and Safety Code of the State of California (the
"Act"),
to provide financing for the acquisition of housing in the
City.
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NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section 1.
Vital Importance of Housinq. The California
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State LegiSlature has declared that the subject of housing is of
vital importance to the health, safety and welfare of the residents
of the State of California for the following reasons:
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(i) Decent housing is an essential motivating force
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in helping people achieve self-fulfillment in a free and
democratic society.
(ii) Unsanitary,
unsafe,
overcrowded or
congested
dwelling accommodations constitute conditions which cause an
increase in, and spread of, disease and crime.
(iii) A healthy housing market
is one in which
residents of this State have a choice of housing opportunities
and one in which the housing consumer may effectively choose
within the free marketplace.
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Section 2.
Authority to Undertake Home Mortqaqe Finance
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Proqram.
The Counci I hereby affirms and concurs wi th the findings
of the California State Legislature that:
(a) there exists within
the State a serious shortage of decent, safe and sanitary housing
which is affordable to many persons in the State; (b) this shortage
is exacerbated during periods of high interest rates, particularly
as high interest rates have the effect of diminishing the number of
otherwise creditworthy buyers from qualifying for private sector
mortgage capital sources; and (c) in order to remedy this adverse
effect on potential homebuyers on the lower end of the purchasing
spectrum, it is necessary to implement a public program to reduce
the cost of mortgage financing for single-family purchases for those
persons unable to compete for mortgage financing in the conventional
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mortgage
market.
The
Act
confers
the
authorization
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upon cities and counties to undertake a home mortgage finance
~ program and to issue revenue bonds to fund such program.
Section 3.
Findinqs and Declaration of Public Purpose.
In accordance wi th Section 52031 of the Act, the Counci 1 hereby
finds and declares that it is necessary and essential that the City
be authorized to undertake a home mortgage finance program and this
Ordinance is being adopted pursuant to the powers granted by Part 5
of Division 31 of the Health and Safety Code. The Council further
finds and declares that within the City there is a shortage of
decent,
safe
and
sanitary housing,
particularly of
housing
affordable by persons in the lower end of the purchasing spectrum,
and that there is a public need to encourage the construction of
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.'- homes affordable by such persons and otherwise to increase the
housing supply for such persons.
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Section 4.
Adoption of Home Mortqaqe Finance Proqram.
The Counci I hereby adopts this Ordinance, pursuant to the powers
granted by Part 5 of Division 31 of the Health and Safety Code of
the State of California, and hereby establishes a Home Mortgage
Finance Program of the City for the pUblic purposes set forth in the
Act. All financial provisions and other precise terms of the Home
Mortgage Finance Program of the City shall be hereafter approved by
resolution of the City which shall be those provisions and terms as
shall be set forth in the Trust Indenture, the Origination,
Servicing and Administration Agreement and the several Developer
Agreements.
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Section 5.
Compliance with Land Use and Housing
Elements.
The Home Mortgage Finance Program of the City
shall comply with the land use element and the housing element
of the general plan of the City for the developments to be
financed in the City.
Section 6.
Liberal Construction.
The provisions
of this Ordinance, being necessary for the welfare of the City
and its inhabitants, shall be liberally construed to
effectuate the purposes of the Home Mortgage Finance Program.
Section 7.
Authorization of Officers. The proper
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officers of the City are hereby authorized and directed to
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perform any acts and enter into and execute any agreements or
other documents that they may deem necessary or appropriate to
implement the Home Mortgage Finance Program.
Section 8.
Effective Date. This Ordinance shall
take effect immediately upon adoption following the second
reading thereof as provided in Section 52031 of the Act for
the purpose of increasing the housing supply in the City. The
City Clerk is hereby authorized and directed to cause this
Ordinance to be published in the City within ten (10) days
after its adoption.
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I HEREBY
adopted by the
San Bernardino at
held on the
the following vote,
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CERTIFY that the foregoing
Mayor and Common Counci I
a
Ordinance
of the
meeting
day of
to wit:
AYES:
NAYS:
ABSENT:
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Council Members
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was duly
Ci ty of
thereof,
1985, by
City Clerk
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The foregoing Ordinance has been duly passed, adopted and
approved this day of , 1985.
Approved as to form:
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City Attorney
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Mayor of the City of
San Bernardino